Worry Over Prime US REIT's Possible Covenant Breaches Eases, RHB Research Says -- Market Talk

Dow Jones02-23

0310 GMT - Market concerns over Prime US REIT's possible breaches of gearing and financial covenants due to portfolio-value declines has eased, RHB Research analyst Vijay Natarajan says in a research report. While the REIT's gearing reached 48.4% at end-2023, this level is well below financial covenants and official limit of 50%, he notes. The next key catalyst will be the refinancing of the REIT's $600 million credit facilities due in July 2024, for which constructive discussions are ongoing, the analyst adds. However, RHB lowers the unit's target price to $0.23 from $0.35, partly to reflect the REIT's bonus issue, while maintaining its buy rating. Units are 2.3% lower at $0.129. (ronnie.harui@wsj.com)

(END) Dow Jones Newswires

February 22, 2024 22:10 ET (03:10 GMT)

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The next key catalyst will be the refinancing of the REIT's $600 million credit facilities due in July 2024, for which constructive discussions are ongoing, the analyst adds. However, RHB lowers the unit's target price to $0.23 from $0.35, partly to reflect the REIT's bonus issue, while maintaining its buy rating. Units are 2.3% lower at $0.129. 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